Cullumber Inc.
Ivanhoe Inc.
Oriole Inc.
Direct materials
$650
$450
$210
Auditor labor costs
$6,200
$6,800
$3,975
Auditor hours
76
91
49
Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $51 per auditor hour. The
Cullumber Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $12,500.
(a) Determine the cost of each job.
Cost
Cullumber
$
4,526
Ivanhoe
$
5,091
Oriole
$
2,709
(b) Indicate the balance of the Service Contracts in Process account at the end of November.
Balance in service contracts in process account
$
12,326